The Hindu Business Line : Hatsun expanding domestic, export markets

Hatsun Agro Product Ltd, the Chennai-based private dairy, is gearing up for an expansion in the domestic market in branded milk sales and strengthening its export products output with a larger milk ingredients unit.

Addressing presspersons on a trip organised by the company to its dairy in Kanchipuram, Mr R.G. Chandramogan, Chairman and Managing Director, Hatsun Agro, said that its new 22-tonne a day milk powder plant would be ready in a fortnight in time to meet the heavy milk arrivals expected for the season.

The company has a capacity to produce over 60 tonnes milk ingredients - milk powders, dairy whiteners and anhydrous milk fat - at Kanchipuram and Salem. Milk ingredients export is a major opportunity with the business growing at about 1.5 per cent world over and at 4 per cent in India, he said.

Hatsun Agro expects to conclude the current year with a turnover of Rs 560 crore against Rs 450 crore last year with most of that growth coming from exports. Its milk ingredients are exported to over 23 countries, Mr Chandramogan said.

On its milk business, he said that from September 2005 to now the branded milk sales have grown to 8 lakh litres a day from 6.4 lakh litres. It is expanding soon into Andhra Pradesh with a move into Tirupati. Its brands, Arokya and Komatha, are market leaders in Tamil Nadu, Karnataka and Kerala, he said.

The company expects branded milk sales to cross 10 lakh litres in the next 12 months, he said.

According to Mr B. Nandakumar, Chief Marketing Officer, Hatsun Agro, milk marketing is being strengthened with the establishment of franchisee outlets, Hatsun Distribution Centres, which will have specific areas earmarked for them. There will be 10 such centres in Chennai and two in Tiruchi initially, which will be expanded.

The franchises launched on a pilot basis will be expanded and they will market the milk brands aggressively across various segments - domestic and institutional. They will complement Hatsun's exclusive dealer networks, he said.

To expand range of ice cream flavours

Hatsun Agro Product Ltd is planning to expand its range of ice cream flavours under the Arun Ice Cream brand.

According to Mr Chandramogan, the company plans to invest over Rs 7-8 crore in the ice cream business.

It has over 70 flavours now and will add another 7-8 in time for the coming summer. The ice cream business accounts for about 10 per cent of the company's sales.

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